You have been given the responsibility of operating the community theater in a small town. The costs of running the theater depend on the number of people that attend and these costs can be met either through taxes or admission fees or both. Only members of the community can attend the theater. You have found that if the town government levies no tax and charges an admission fee of $4.50, each person in the town attends the theater once a season. If a tax of $2.00 per person is imposed and an admission fee of $1.50 is charged, each person attends 4 times, and with a tax of $5.00 and an admission fee of $0.50, each person attends 7 times.
If you want to do what is best for the town, which of these three plans should you adopt? Costs are covered in each circumstance.
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